The Indian entertainment and media industry is expected to grow cumulatively at a 13.2% compound annual growth rate (CAGR) over 2011-15 to reach Rs 1,19,900-crore, a Price Waterhouse Coopers (PwC) report released here today said.
The industry is expected to continue its double-digit growth trajectory in 2011; and with sustained growth in advertising as well as consumer spend, it is likely to achieve double-digit growth in the forecast period of 2011-2015, with TV, print and movies continuing to dominate for the foreseeable future, PwC's latest report 'India Entertainment & Media Outlook 2011', said.
"The buoyant advertisement spend will have to be supplemented with subscription growth for sustainable profitable growth.... Digitisation in the broadcast space and focus on good content across sectors will go a long way in achieving this objective," PwC India's Entertainment & Media Practice Leader, Timmy Kandhari, said.
Indian entertainment and media industry recorded one of the highest growth rates in the world growing at 11.2% in 2010. This was largely due to rebound in consumer spend, advertising spend and most importantly the entertainment and media spend, the report said.
The industry grew a little slower than expected largely due to the downturn in the movie segment. All other segments grew as predicted. The industry is poised for greater growth in the foreseeable future though some key regulatory hurdles remain.
The report has also outlined the outlook for major segments of the Indian entertainment and media sector in 2011-2015.
The television sector is projected to command half of the entertainment pie by 2015, as it is estimated to grow at a robust 14.5% cumulatively over the next five years, from an estimated Rs 30,650 crore in 2010 to Rs 60,250 crore by 2015, the report said.
The movie sector is expected to grow at a CAGR of 9.3% over the next five years, reaching Rs 13,650-crore in 2015 from the present Rs 8,750-crore in 2010.
The report expects the print media to grow by 9.6% over the period 2011-15, reaching Rs 28,200-crore in 2015, from the present Rs 17,870-crore in 2010.
The radio sector is projected to grow at a CAGR of 19.2% over 2011-15, reaching Rs 2,600-crore in 2015, from the present Rs 1,080-crore in 2010, the report said.
Due to the tremendous uptake of the mobile value added services market, the music sector is projected to grow at a CAGR of 17.6% over 2011-15, reaching Rs 2,140-crore in 2015, from Rs 950-crore in 2010.
With a rebound in overall advertising, internet advertising too is projected to grow by 25.5% over the next five years and reach an estimated Rs 2,400-crore in 2015 from the present Rs 770-crore in 2010.
